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ZAMBIA edence with regard to competition issues. In many instances, sector regulators preceded competition authorities and were thus given responsibility for competition issues in their respective sectors. Even in cases where new sector regulators have been created after competition authorities, most countries choose to assign them competition responsibilities Figure 1: Regulatory Environment in Zambia 157 CAZ Local Authorities NWASC RDA ZDA ERB ZABS CC PC CEEC Source: Zambia Competition Commission Strategic Plan: 2008-2011 In Zambia, like in most other countries, regulation cannot entirely be separated from competition law, as observed by the former ZCC in its Strategic Plan: 2008-2011. Regulation has often preceded competition law, and was used as a fundamental economic sectors. Of all the sector regulators in Zambia, four stand out as requiring cooperation with the Commission in the implementation of the country’s competition policy and law since they have some competition functions. These are the Pensions and Insurance Authority (PIA), the Zambia Information and Communications Technology Authority (ZICTA), the Energy Regulation Board (ERB), and the Bank of Zambia. The enabling Act of PIA is the Pension Scheme Regulation Act, 1996 (No.28 of 1996) (as amended 137 as a means of infusing and diffusing competition principles in the sector-regulatory regime. The regulatory environment in Zambia has grown considerably, with competition regulation by the Competition Commission occupying the centre of that environment, as shown in the Figure 1 below: ECZ PRA ZWMA GRZ Depts RTSA by Act No.27 of 2005). The broad functions of the Authority are to supervise and regulate the pensions and insurance industry in Zambia, and to license entities operating in the industry (i.e., pen- of its enabling Act include “in consultation with the Competition Commission to formulate and implement measures calculated to encourage healthy competition and eliminate unfair practices in the insurance and pensions industry”. ZICTA administers the Information and Communication Technologies Act, 2009 (ICT Act), as well as the Electronic Communications and Transactions Act, 2009, and the Postal Services Act, 2009. The basic functions of the Authority in terms of section 6 of the ICT Act include the implementation and ZAMBIA
138 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE administration of the licensing and assignment schemes in the Zambian ICT market, the provision of national frequency and numbering plans, the allocation of radio transmission frequencies, and the promotion of research and development. It also has the statutory function to “promote competition among persons engaged in commercial activities relating to, or in connection with, the provision of information and economy on the part of persons so engaged”. Section 8 of the ICT Act however provides that “the Authority shall consult the Zambia Competition Commission on any matter relating to competition in the sector”. According to the Commission, a lot of anticompetitive practices go unchecked in the telecommunications services sector because of the concurrent jurisdiction on competition between the Commission and ZICTA, which confuses the investigative and enforcement authority. The Commission is however receiving a lot that there are a lot of competition concerns in the sector, with the major concern being dominance, and its abuse through both exploitative and exclusionary practices. The Authority had to put price caps on interconnection rates to avoid predatory practices, as well as collusive pricing. Tying arrangements are also prevalent in the sector. The ERB was established under the Energy Regulation Act, 1995 with the functions of licensing all players in the energy sector (electricity, petroleum, gas, etc.), and setting electricity tariffs. of undertakings in the energy sector, and investigates complaints from consumers on price adjustments made, or services provided, by the undertakings. The Board’s competition functions in terms of section 6 of its enabling Act are “in conjunction with the Zambia Competition Commission established by the Competition and Fair Trading Act, monitor the levels and structures of competition within the energy sector with a view to promoting competition and accessibility to any company or individual who meets the basic requirements for operating as a business in Zambia”. The Bank of Zambia is a Statutory Body that was established under the Bank of Zambia Act, 1996. It administers the Banking and Financial Services Act, 2005. Its broad functions are to formulate and implement monetary and supervisory policies that will ensure the maintenance of price balanced macro-economic development. The Bank has competition functions since it is concerned over collusion between banks on interest rates and other charges. In the area of mergers and acquisitions, no banking undertaking can engage in corporate restructuring without the authority of the Bank. The factors that the Bank takes into account in assessing consolidations include limitations in voting control to avoid dominance by one undertaking. There are serious competition concerns in all the regulated sectors, with the main concerns being: (i) abuse of dominance, or monopolization (in the ICT, insurance, energy (particularly electricity) sectors; (ii) collusive and cartel-like behaviour (ICT, energy, and banking sectors); (iii) tying arrangements (ICT sector); and predatory lending (banking sector). From the interviews held with all the above sector the cooperation between the Commission and the regulators is good and satisfactory, with the sector regulators acknowledging the supremacy of the Commission over competition matters in their respective sectors. The following are the views and comments expressed in that regard: (i) as provided for in the ICT Act, the Authority has to collaborate with the Commission on any issue related to competition, including the Authority’s pricing determinations – the Authority also always seeks the advice of the Commission whenever it receives applications for change of licences; mergers and acquisitions in the sector are not the Authority’s primary concern, but that of the Commission; the Commission however always requests the Authority’s views and comments on such transactions (Zambia Information and Communications Technology Authority); (ii) even though the Board has concurrent jurisdiction with the Commission over competition in the energy sector, it views the Commission as the boss in that area, and that the role of the Board is to give the Commission the necessary technical advice and support; the Commission
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UNITED NATIONS CONFERENCE ON TRADE
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Page 176 and 177: ZIMBABWE TABLE OF CONTENTS PREFACE
Page 178 and 179: ZIMBABWE This report is part of the
Page 180 and 181: ZIMBABWE With the growing political
Page 182 and 183: ZIMBABWE of restrictive practices,
Page 184 and 185: ZIMBABWE competition authorities do
Page 186 and 187: ZIMBABWE divided according to geogr
Page 188 and 189: ZIMBABWE The Commission in 2006 whi
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ZIMBABWE (under Section 9); basical
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ZIMBABWE Full scale investigation i
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ZIMBABWE (ii) to produce any book,
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ZIMBABWE The fact that CTC has a co
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ZIMBABWE tariat of technocrats, who
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ZIMBABWE Table 2: Number of Competi
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ZIMBABWE Regarding the handling of
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ZIMBABWE (Emphasis by the author) b
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ZIMBABWE Section 5 (1) (f) that pro
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ZIMBABWE Whilst the arguments can b
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ZIMBABWE Anti competitive agreement
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